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| Prudential fined £30m over AIA bid | Prudential fined £30m over AIA bid |
| (35 minutes later) | |
| Insurance giant Prudential has been fined £30m by regulators over its 2010 bid to buy AIA, an Asian subsidiary of US insurer AIG. | Insurance giant Prudential has been fined £30m by regulators over its 2010 bid to buy AIA, an Asian subsidiary of US insurer AIG. |
| The Financial Services Authority (FSA) has also censured Tidjane Thiam, Prudential's chief executive. | |
| The regulator said Prudential had failed to inform it of its plans to buy AIA and had failed "to deal with the FSA in an open and cooperative manner". | The regulator said Prudential had failed to inform it of its plans to buy AIA and had failed "to deal with the FSA in an open and cooperative manner". |
| Chairman Paul Manduca said: "We wish to draw a line under the matter." | |
| Prudential's deal to buy AIA eventually failed after shareholder opposition. | Prudential's deal to buy AIA eventually failed after shareholder opposition. |
| The FSA felt it should have had more time to decide whether or not to approve the deal on regulatory grounds, especially since Prudential's proposed £14.5bn rights issue to fund the purchase would have significantly changed the company's risk profile. | The FSA felt it should have had more time to decide whether or not to approve the deal on regulatory grounds, especially since Prudential's proposed £14.5bn rights issue to fund the purchase would have significantly changed the company's risk profile. |
| The FSA said the deal "had the potential to impact upon the stability and confidence of the financial system in the UK and abroad". | The FSA said the deal "had the potential to impact upon the stability and confidence of the financial system in the UK and abroad". |
| Prudential failed in its $35.5bn (£23bn) attempt to buy AIA after shareholders vetoed the deal, fearing the purchase price was too high. | |
| Mr Thiam argued that the deal was worth it because it would have doubled Prudential's market share in Asia. | |
| But he was unable to persuade AIG to accept a lower offer of $30bn and the scuppered deal cost shareholders £377m. | |
| In a statement Prudential chairman Paul Manduca said: "We wish to draw a line under the matter, and to ensure our constructive relationship with our regulators remains good. | |
| "Tidjane acted at all times in the interests of the company and with the full knowledge and authority of the board. | |
| "The board wishes to express its satisfaction that all parties have agreed to this settlement." |